mark: i'm mark crumpton with bloomberg's first word news. president trump says the law is side to fight democrat attempts to seize business and personal tax returns. as he left the white house for a trip to the u.s. and mexico border, he told reporters "i'm under audit" and added the law on releasing tax returns is "100% on my side." there is no law that bars releasing of tax returns being audited. the house ways and means committee chairman richard neal asked the irs on wednesday to release six years worth of mr. trump's returns. the foreign ministers of the g7

countries have met in the french atlantic resort for a two day summit meeting focused on cybersecurity to trafficking of drugs, arms, and migrants in africa's trouble to region and fighting gender inequality. meantime, a top american diplomat has pledged u.s. commitment to the g7 despite the absence of his boss, u.s. secretary of state mike pompeo. the deputy secretary of state told the associated press that "given development over the last decade or so, the g7 is more relevant than ever. we are like-minded democracies." the british foreign secretary launched a media freedom campaign alongside international human rights lawyer and a canadian foreign minister. they held a press conference on the sidelines of the g7 meeting. of globale issue was importance, especially in the

wake of the killing of writer jamal khashoggi in the saudi consulate in istanbul in october of 2018. the deadliest year on record for generals. foreign minister friedland said now is a moment when open society for liberal democracies are facing real threats. >> i think probably the greatest threat than at any time in my lifetime inside our own democracy, and we are seeing a real effort in many parts of the world and even around the world to underline the promotion of an open society to undermine the idea of liberalism. essential that it is for liberal democracies to push back. mark: secretary hunt's will freedom specialist

offer advice to governments who want to strengthen generalist rights. one person has died and almost 5000 people have been forced out of their homes as massive wildfires scorch parts of south korea. buyers scorched 1300 acres in the nation's northeast. it sits in an area close to the north korean border. within one hour of the site of last year's winte olympics. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ scarlet: from bloomberg world headquarters in new york, this is "bloomberg markets: the close." i'm scarlet fu. caroline: i'm caroline hyde. we are about 30 minutes from the end of the trading day. the trading.

actually -- the trading week. actually we are up half a percentage point today. the data seemed to have helped. the economy is on track. adding jobs. not that much inflation. stocks up. oil up. gold down. really feels like a risk on really feels like a risk on mood. scarlet: on the s&p, we are within two percentage points of a record high. we are also looking at the doubt, held back a little bit hereby dow think. -- inc. a bearish note on that company. the undercurrent is a better feel when it comes to trade discussions between the u.s. and china. that is helping lift the etf that tracks china shares. caroline: meanwhile, bonds getting a bit of a run but crude oil up to percent. this has fueled the energy sector today. -- 2%. this has fueled the energy sector.

scarlet: pretty remarkable. caroline: let's look at the key movers on the back of endless repetitions. cut the $47l paper price target. a great company facing tough market conditions. pretty flat on the day. snap upgraded to a hold with a $10 price target after it announced new services. a rise in advertisers and increased engagement with gaming. the stock has doubled this year to date. finally, wells fargo downgrading intel to market performer at the $60 price target. weakening due to semiconductor demands. scarlet: we will talk about chips a little bit later on, but let's move onto financial stocks because they have to fight history when the economy is on an upswing and therefore could do so again when the economy turned south. so says a uber columnist.

you -- so says a bloomberg columnist. what got you thinking about this? banks will likely be held back, be held back, constrained when the next downturn begins. that is not a new observation, is it? >> that's right. we have known for a long time now that the banks have been holding back for a couple reasons. they were burned by the and also, aisis, lot more regulation over the last few years. dodd-frank and other regulations that have come along. banks have not been their usual selves. this has shown up in the prophets and in the stock prices. profits and in the stock prices. financials are overrepresented in value indexes. that is one of the reasons why investors happen suffering over the last 10 years. caroline: why are they overrepresented? >> good question, and the answer

is a bit wonky so bear with me. the value screens in general look at various metrics, one of which is the price-to-book ratio. in the academic evidence, everything is based on price-to-book. banksting rules require to market most of their assets whereas other firms such as manufacturing firms and the like, their assets are held at historical cost. what that means is that in general, financials tend to have lower price-to-book ratios than other firms because of the device on the book value, and therefore, they tend to get kicked into value streams and have a hyper presentation in value indexes in general. scarlet: that might be why the >> of warren buffett -- the likes of warren buffett consider a value stock or not. before the financial crisis, they were engines of growth, almost growth stocks anyway. -- they, the number

were great performers in the 1990's and until the financial crisis. it changed in the financial crisis, which is a good reminder that there are two sides to the equation. are looking at pes and not price-to-book, there is the person earning. what struck me about jamie dimon's reminder, it goes to the earning side. banks were burdened with the financial crisis because of exposure from the leverage and earnings full up at cliff. -- felll off a cliff off a cliff. in the next recession, they are expected to hold better than other sectors. they are a lot cheaper because they have not performed the last 10 years. i think they have both price and earnings in their favor. i think they might hold up a lot better than the rest of the sectors in the next downturn. caroline: potentially looking at outperforming as a value play if they are a bit more cautious going forward. what do we brace ourselves for as we come to earnings season

right here, right now, when the downturn is not quite upon us yet and certainly with the fed on hold? nir: it will be interesting to see what the numbers look like because we almost had a bear market in the fourth quarter of last year. in general, i'm a big fan of the market generally giving investors pretty good signals. i think the market is smarter than any of us individually. incourse, we had the rebound the first quarter some people have forgotten about the fourth quarter, but did the market know something? was the market warning us about something coming? i will be looking to see whether there is softness in the earnings numbers that are coming. caroline: quick perspective. we love having you on. good luck. the first quarter was as bad as it said it was going to be. we will discuss, next. this is bloomberg. ♪

get you a quick

get you a quick check on the latest business flash headlines. bmw likely to take a revision on the one billion euro antitrust claim from the eu. the eu is investigating cooperation among german automakers to restrict the development and rollout of the emissions reduction technology. german automaker expecting a significant find from the commission but will contest the allegations. the royal family has won a profitable role in what could be one of the biggest ipo's ever. the formal oversee uber's stock after it goes public. the role of stabilization agent comes with the potential for more commissions on trade. may begin later this month. apple reportedly has surpassed spotify and paid scription's. apple has more than 28 million subscribers. spotify has 26 million. apple has decided to make the app on other vendors's platforms

like the google play store. profit indecline in more than four years. operating income fell in the latest quarter. the conglomerate was hurt by memory chip prices and slow smartphone sales. by anre, we are joined analyst for bloomberg intelligence. bloomberg estimates a 56% decline. is it going to be better? >> not in 2019 unfortunately because you have the three worst businesses exposed heavily. you have weakening prices. this is volatile memory that goes into pc's, processing memory, and in smartphones and servers. while the other two segments are doing ok, falling smartphone sales or shipment charter will not help. there is too much supply coming online.

darned if you do, darned if you don't. if you don't move aggressively to the new technology and layer it aggressively, you don't get costs down. if you don't get costs down, you don't have the potential to stabilize margins when prices go down. you are in a race to expand the new technology, which increases supply, which collapses. that is on the nano side. to add insult to injury if you may is you are exposed to the device that is causing the problems and the other two areas, which is smartphones. you are potentially hitting saturation levels. there is not enough demand to make you upgrade to the new 1200 telephone. $1200 phone. scarlet: even if it folds? anand: even if it. folds.ntum -- even if it momentum may be slow and simpson bears the brunt of it. scarlet: we knew this was

coming. what i found interesting was that samsung is exposed to the pc market. intel is. wells fargo downgraded intel. anand: look. generally, i agree that we have come too far, too fast. q1 snapecline and the back in terms of the magnitude and velocity -- caroline: share rally, you mean. anand: yes. very fast on the downside and upside. q1said we want to wait for numbers to come out to see if the fundamentals are projecting a recovery that substantiates the share rally. right? but on the other hand, if you look at the companies within the space and you look at companies like intel, which have very low companies like intel, which have very low expectations compared to amb and

nvidia with high expectations, you have to pick your spots. in our opinion, intel is not it. scarlet: intel shares are down by 0.7%. even a chipmakers overall are higher. thank you. thank you so much. now, we have about 15 minutes to go before the market closes. record high. caroline: seven days of gains. this is bloomberg. ♪

♪ caroline: this is countdown to the close. i'm caroline hyde. scarlet: i'm scarlet fu. look who is with us, joe on his favorite day of the month. joe: a huge day for me. my favorite day of the month. theyou know, the thing is message is very similar month and month out, which is that we continue to create jobs in this country, but no real signs of labor market tightness or coming to an end, wage growth sliding back, other measures,

underemployment not doing anything particularly special. thestory, i keep thinking story that has been the case for nine or 10 years now is still the story that has been the case for nine or 10 years now is still the story just ok growth and no signs at the end. caroline: is this goldilocks right now or picking copycats? -- caveats? joe: no caveats. that is a cul-de-sac. that is a cul-de-sac. looking at the big picture, we are creating jobs, not that tight. i guess it is goldilocks. scarlet: makes it more sustainable. let's look at how it shakes out in the market because when you look across the industry sectors, pretty broad advance here. leading the way with crude oil prices moving higher. caroline: on a tear. what is it? the best run in the s&p 500, seven days long, since 2017. the best run on a weekly perspective since 2017 as well. seems like risk on in this respect. scarlet: utilities and foods and staples, some defensive groups

on the upside as well. on the flipside if you look at the big decliners, banks are off by a half of 1%. materials and media materials and mediae entertainment in the red, but really not by big margins. caroline: it does once again, we keep on saying it, feel like a multiple. scarlet: although it is all over the place today and the dow is being dragged all over for its gains restraint. nasdaq and s&p firmly in the green. caroline: yes. we are up about 2% on the s&p 500. scarlet: absolutely. we are moments away from the close. let's take a closer look at what was driving the action heading into the close. start with abigail. abigail: big gainer on the day and week, the third-best dock for the s&p 500 this week, harley davidson. up more than 13%. this is a one-year chart. here is the last week of action. you see the bullets action --

bullish action. talking about the s&p 500, best seven days or longest winning streak since 2017. oil, 2017. back above the 200 and moving average. the first quarter sales could in better. take a look at the 200 and moving average over the last year. harley davidson unable to get above it. interesting to see whether or not it can. taking a look at one of the best performing stocks on the s&p 500 this week, and that is delta. delta actually on a nine day winning streak. that is the longest streak for put inince 2008, and it 17% worth of gains in that time. really taking off on tuesday when the company offered an upbeat outlook on its first-quarter earnings. they also said they were renewing their partnership with amex. $3.4 billion in revenue last year for that partnership. delta getting a lift from the continued grounding of boeing 737 max jets. delta does not operate any of

the 737 models. the stock could have further rally next week when we get the full first-quarter earnings report. romaine: thanks. i'm taking a look at duluth holding. this is an apparel maker, the second-biggest decline are in the nasdaq, down 25% after a pretty bad earnings report. this apparel company only has 46 stores out there, but it starts selling tool belts and a lot of work where -- wear and has been trying to expand to casual wear likear -- what you would find at rei. the company has spent a lot on advertising. you may know them from the quirky commercials featuring pole dancing fat guys. on the conference call today, executive's acknowledged the

problem that they have a slew of colorsducts, sizes, supposed to appeal to a broader audience, including a lot more plus sizes. tooline: pole dancing and belts, you bring us everything. for more, let's get even more more, let's get even more with sarah ponczek, cross-ice at reporter from bloomberg news. get as excited because we are up 0.4%. more, let's get even more with sarah ponczek, cross-ice at reporter from bloomberg news. get as excited because we are up 0.4%. sarah: i will do my best to try to get you excited, but i would probably say look to next week. scarlet: boring. -- a catalyst? every day, a third of a percent.

do we really need a catalyst? catalyst? sarah: not necessarily. you look at the gains we had this week, half of them came on monday. 2% on the s&p, and that has been gradually seen by small upward gains each other day. if this continues, yes, we are on our way up. but can we keep slowly grinding higher the rest of the year? scarlet: so far, it has been looking that way. as we turn to the market close, let's bring in tom lee, the head of research. lee, the head of research. as we melt our way up and perhaps even make a new record high in the s&p, what is the biggest risk out there to the market? know you have identified a correlation event. what does that mean? >> correlation event is something that causes markets to either converge and move together, which forces liquidation, and i think last year we witnessed it several times through policy error. think the fed caused

correlations to converge and real risk off periods. i think in 2019 it could be the fed or something happening in europe. scarlet: but the fed took itself out largely. no longer a factor. tom: yes, i hope so. [laughter] tom: i think at least what it looks like is the fed is paying more attention to signals from markets. even credit markets today are not pricing in tightening. i think a surprise would end up being if the market expects no tightening and we get and ease. is that interpreted as things are getting worse? something can still happen. joe: just looking at the market right now, this grind up we see, 2% gain for the week, is there any reason we cannot just keep doing this right now? tom: when i used to cover stocks, we used to say the market is trading as if everyone is short because when you are levitating on no news, it is news, it isyone is

because everyone is offsides and needs to get in. so i think the shallow pullbacks and a 2% week on essentially no news showing people are too short right now. caroline: to that end, we have had great reporting on bloomberg. the hedge funds, right? sarah: this is a large part of the equation, the reason why people say we can keep going from here because the data shows that hedge funds are largely out of the market right now. they are on the sidelines. they have not been participating in this rally. if we keep going higher, you can't fight the market, can't fight the fed. eventually, the idea is the likes of hedge funds and other asset allocators as well. we have seen data they are on the sidelines as well. they are going to have to be put back in, and many people are saying it is higher. joe: how miserable is the life how miserable is the life of discretionary? tom: it is glum. i have been in boston, midwest texas, new york meetings. last year was a bit of a beat down.

i think no one really survived the turmoil from october to december. machinest was the year won. no one started the year with a lot of mojo, and we are still getting tough periods because of march was an machines ok month for markets but tougher active managersmanagers get in generale are to bearish. -- too bearish. everyone is chasing a different narrative. scarlet: you wrote a story recently, sarah, about how many active managers or what percent are beating their benchmarks. sarah: march was really difficult. before march, it was half. march came and they were positioning more as if they needed to be defensive. really ratcheting up health, taking down tech. that did not work in march to be 53% came down to 36% in just that one month and that put them on pace for their worst year in 2016. caroline: is the market to short?

what sectors should they be piling into? tom: here is something interesting. the one that is performing the best are inflation sensitive starts right now, which means even though there is no visible that benefitocks from inflation are outperforming big time this year. people need to be more cyclical. don't act like it is the end of the cycle as it stands. we are up 0.5%. relatively risk on even though we remain ever watchful and waiting for a tweet headline that trade headline -- trade headline. scarlet: waiting for the evolution of brexit. what is noteworthy with the melt of his we are looking at volume in the dow that is lower. 14% below the 20 day average, 20% below the 20 day average for the dow jones industrial average. not like a whole lot of

it's not like there's not a whole lot of precipitation -- of participation. caroline: abigail, what are you watching? abigail: we do have somewhat of a banner week for stocks, closing up about 6% on the week, the best week since january, also putting in the first all-time high. beautiful uptrend. there is the all-time high, stocks finished at the high. that is typically pretty bearish -- excuse me, bullish. ais is considered to be leading sector, but this area suggestion is not necessarily bullish. the lows are lower. this pattern may just reverse in the arealike

where it was either way and this is the reverse of 2009 when there were lower highs. it's going to be very interesting to watch. caroline: also interesting to watch is the british pound. hitting 1.32 against the dollar yesterday, it has been falling and has given back all of its weekly gains. the strengthening dollar part of more, it's the chaos with regard to brexit. the prime minister of the u.k. .sking the eu foreign extension labor today saying the prime seeing no real change. it means the prime minister's strategy is becoming untenable.

leaving the pound increasingly hard to trace. e: the biggest biotech ipo --all time, maternal maderno. shares took off, of about 28% this week alone. no real catalyst out there. they did get a new initiation with the $40 price target and they are going to present next week at a big tech conference, but it appears some of the selloff we had over the past few months, that that might have been a little bit overdone. 2596,n see closing at only the second day that has close above a $23 ipo price, which is pretty significant or this stock. i should point out that a lot of the volume today came from one single block trade at about

1:00. scarlet: thank you so much. we have headlines on boeing. it has reduced 737 production. overall, boeing is doing this because it has prioritized certifying software. it says it has seen progress on software updates for the 737 max. we look at boeing shares trading in after hours, a little bit lower, off about 1% or so, but we will continue to keep an eye on that. sarah, you have had a great he's that has been running very high today because it's all about how we prepare ourselves --invest in jens a -- in jen z.ge -- in gen

sarah: they are expected to become this year the most populous generation around the world. to seerg did a survey what trends actually look like. a couple ways you can leverage this, they grew up on social media and really care about what products celebrities are endorsing. that they really seem to be more in tune with .annabis than with alcohol they don't really like alcohol as much it seems, at least that is what they said in a survey. the idea that this generation in an era where you

look something up on your phone and you can almost get anything .elivered that you want : in the past you talked about how it might looking at companies like tobago because millennials respond to those kinds of vehicles -- companies like winnebago. how would you position for that? how would you think about that -- think about that? >> everything you described have export demand growing. it is interesting about the cannabis in the alcohol. fromve seen a drift away beer toward premium spirits. it's puzzling, it kind of got we

scratching my head. i have to read the article here. >> you don't make decisions based on snapchat or instagram. >> i always thought we had to the decisions for ourselves. withpersonally have spoken many people in gen z and they come out and say, yeah, you look at kylie jenner, she promotes kylie lipstick on snapchat, and she is a self-made billionaire. carolyn: $8.6 billion winning .id we will bring you more on that. joe: i want to go back to something you said. everyone thinks this is a late does late cycle mean?

tom: late cycle definitely means late cycle for the economy, which in number terms means investments would be negative. that is why curve flattening signals that usually and it should be an extremely tight have market so you controllable inflationary pressures because people say expectations can change. we did a piece a couple of weeks and the employment market. unemployment rate is a bad measure. caroline: meanwhile, we cannot have you on without asking you about bitcoin. it has been on a tear. .t's come off its highs why are we seeing the sudden

change in sentiment? >> i think a lot of significant things happened this past week , but it looked like it was based on true buying. most people who were skeptical of crypto and witnessed last year's decline said bitcoin was on its way back to 90, so i think sentiment has to change because bitcoin is now in a bull market. joe: besides the price it self, which is notable, breaking above its 200-day moving average, is anything else going on that suggests some sort of turned step? >> i think a lot of clues happened this year. the dollar was not strengthening , and e.m. has been bullish with

china. we have had evidence that was a -- what they call og's for the original wales, and a lot of them sold. that's a dry powder. cumberland had a piece so that the jump we had on april 1 was not short covering. it's actually real money. scarlet: thank you both so much for joining us on this friday. we cap headlines we told you earlier on about boeing, about 1% in after-hours trading after it said it is cutting 737 cuttingn about 19% -- 737 production about 19%. that does it for the closing bell and for me. the team will focus more on the latest headlines from boeing. this is bloomberg. ♪

caroline: live from bloomberg world headquarters in new york, and's how we closed the day week. we are in spitting distance of a record high. was labor market sprang back alleviating some concern about growth. fraudalarm on capitalism take a closer look at closing the u.s. wealth gap.

joe: we begin with jobs today. trump and his advisers take claim for the results. >> the economic numbers just came out. they are very good. our country is doing unbelievably well economically. >> hours worked are rising and even away from that, i just want to note, it has been tough andeen government shutdowns lousy winter seasonal adjustments, but it looks like the economy is slowly coming back now. joe: four inside, we welcome the chief economist at grant thornton in chicago. what is your big picture read? is there any sign of slowdown when you look at today in data

or overall? >> there is a sign of a slowdown. still really strong and really great, but cap creation was down about 20% from what we saw a year ago. another part is that we are literally in some cases [indiscernible] : the stock about the effect of that on wages. peoplenot see the effect were expecting. i wonder if this may be a temporary lull where we return to a little bit more sustained growth. >> we have sustained above 3% growth, which originally the fed

thought would hit its core inflation rate, which it did not. almost all the games have been in nonsupervisory workers. wages have picked up, which is great for those workers, but we have not seen the trickle up you usually see into management and minimum-wage jobs. even though we have not seen acceleration in the higher paid jobs, we are seeing more hiring in higher pay jobs then we did in the past. carolyn: -- the fed has been pretty clear there is nothing to portend a need to raise or lower rates at this time, they are , but unlessne line a big event happens like how we

does the bullet this week on closing the mexican border, there really is not a need. joe: eu noted before the fed has -- you notedd before the fed has been .urprised in the past it feels like they have sort of thrown in the towel. what is actually the dynamic that prevented it from picking up? >> is complex. dynamics isiggest workers have lost a lot of power in the overall marketplace, which has lowered the pastor. lowered wages overall, but lowered wage gains the inflation. the other issue is the big discounters out there. in the 1990's, walmart hit critical mass in rural areas, it slowed down inflation in the united states.

this time around it is amazon. what we have seen as there are big players out there willing to keep prices down, even if it means at a loss if they can make profit elsewhere changing the inflation dynamic along with the labor market, which has changed dramatically from what we've seen in the past. the dynamics we once saw are not because there is less competition even among low-wage workers who have non-competes who cannot go to another fast food restaurant even if they pay more. : in this report we got, we saw for a second straight month a decline in retail jobs. >> we have seen some weakness in retail sales. we've also seen the ongoing

restructure of bricks to clicks. we also had a later than usual easter which delayed spending into april that we usually what retail is but the more of a structure from bricks and it's just not offsetting. many of those retail workers are older workers. i think it is important in the context of the fed. we have seen interference with monetary policy by presidents before. president nixon interfered with monetary policy to ensure his reelection in 1972 and that helped to see the stagflation of

the 1970's. it is nothing new. what is new is the public way it is being done. what is more important is whoally appointing people are unprecedented ideologues and the willing to bend to political whims of someone in political office undermines credibility but does not change behavior. caroline: great to get your perspective, as always. now a quick check on what is happening with boeing because we have seen shares give up some territory after-hours. cutting production of 737 jetliners by april. this is bloomberg. ♪

caroline: a quick check of the .atest business flash headlines bloomberg has learned there are likely to be more soft cuts and employeesre than 3400 , down from previous years. a trillion dollars sovereign wealth fund will stop selling corporate bonds. the finance ministry says the fund will have leeway to invest a emerging markets and commodities hedge fund manager responding to a top trading year in 2018.

last year, the lust 20%. lostne -- last year, it 20%. boeing. turning to the news it's cutting production on the 737 max jett sent shares a little bit lower. let's turn to bloomberg's new aviation safety reporter. i thought bloomberg was -- i thought boeing was supposed to have a fix by the end of last month. what do we know so far? week learned early this there was a problem with the new software fix and how it interfered with the rest of the 's flight controls. that is actually not unheard of. they need to make sure everything is working together, so they are having to work

through that. they say it will take a few more weeks, but after that, the federal aviation administration has to approve it, so it could take perhaps longer as well. joe: boeing said it's going to 20% ofthe pace by about its 737 production. what does that mean? now expectedright pace of 50 planes a month, going down to 42, they say, at least temporarily. the impact a little bit bigger, though, big picture because they had planned to increase by midyear. it makes sense. the plane is grounded. you have great uncertainty. they were actually having difficulty finding places to .ark these things

time will tell. if this continues for more than a month or two, i think it could be more significant. caroline: who is going to pull back most? who do you think predominantly is going to put off? big question, and a lot of it depends on factors that are hard to gauge right now . there is a lack of confidence in the public. regulation in china, which essentially revoked their certification for the plane. it could become quite for perspective, when there were issues with the 787, things returned to normal

quite quickly after there was a cooling-off period. romaine: we are seeing supplies really fell off after-hours. they really depended on boeing for about 75% of their revenue. these suppliers have been ramping up with regards to hiring, getting supplies ready for what they thought would be an increase in number of planes. joe: implied leverage, expecting an increase and a decrease. caroline: in the story, 600,000 parts needed for each individual plane. romaine: these are a lot of small companies that just don't have the facilities. joe: coming up, we look at the economics behind facetime.

this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. former vice president joe biden opens up and speaks for the first time since facing criticism from several women for unwanted touching. he said he got permission to hug union president lonnie stephenson. he also hugged a boy from the audience when a group of children join him on stage. he joked about that as well.

also had sharp criticism for president trump. >> while this president wages war on twitter and attacks the most important institutions -- the court, the press, the the rest of the world is passing us by. mark: the former vice president also praised unions and credited them with building the middle class. secretary of state mike pompeo says he's confident there will be a third summit between president trump and north korean un.der kim jong he says he hopes the meeting will take place soon. president trump is scheduled to meet with the south korean president next week. the trump administration has aen blocked from adding

citizenship question to the 2020 census. the judge added that the question is arbitrary and violates the administrative procedures act of 1944. the israeli election is only days away. prime minister benjamin netanyahu is up for reelection where he will essentially face a fifth term in office. this is considered the most contentious election in his tenure. he faces three corruption charges.-- global news 24 hours a day on .ir and at tictoc on twitter news.ne: breaking alleged altercation since you

have occurred at the fremont manufacturing unit of tesla. allegations of an employee saying elon musk pushed him. we understand the board has investigated and reviewed the matter and they say no altercation happened. ofertheless, the allegation physical contact and verbal haranguing still unresolved. for ahe s&p 500 rising second straight day, the longest rally since 2016. matt is here to take us through what caught his eye. matt: one thing we've been talking about a lot the last couple of months, some of the racial disparities we've been tracking and how those have in improving. one of the things that definitely caught my attention again this month was that gap

for prime working age black men versus prime working age white men. labor force participation for prime working age black men has really caught up to that for white men for the first time in a really long time. part of that is because labor force for dissipation for white men has come down a lot. it is neither the highest levels since the early 1990's. it still has a long way to go to get to pre-mass incarceration times, so you can see the market certainly having an effect. romaine: that is working out in favor of a lot of folks, but one thing we talk about is this is -- there is also this wealth gap . you were involved in a story

that we sort of referred to as .aby bonds proposal was designed by derrick hamilton at ohio state and andy berry at duke university. the idea is that to close the racial wealth gap, what we really need to do is in doubt black children with financial assets that they can then invest in financial markets because that has been the missing element. if you look back throughout american history, we had a lot of programs, for example, too, you know, get people into housing throughout the postwar period, but those programs or all very exclusionary toward african-americans. government that the

steps in and resolves the issue that the government itself created and give african-americans capital that they can use to put a down a house or fund a college education, that sort of thing. caroline: they actually say if you really want to close the gap, you need to go further. matt: they are doing a lot of work on reparations which for a long time we have not talked about in the u.s., but now all of a sudden you have these democratic presidential candidates talking about this sort of thing. what they say about the baby bond proposal is it is not specifically designed to address that. what it really does is offer an opportunity for both white and black children alike from a lower socioeconomic status to be able to close those disparities.

fact it maypite the be sort of politically unpalatable for a lot of people, results incs of it what would be a transfer of wealth to some degree. does look att modern monetary theory. they kind of like the framework and thinking about it. it is definitely a general redistribution coming out of society's pocket at large and those lowert to wealth areas. caroline: it is a great read. has beenequality [indiscernible] dialogue at the moment. seems to begh, it

the billionaires who have the time to think about how we redistribute some of their wealth back to others. joe: i seems like he just gives keepsng it up and adjust getting more and more intense. romaine: the one thing i did like was that he actually did have proposals. he wasn't just pointing out the problem. at least he is proposing some sort of solutions. not all: and they are about taxes. they are more about education. romaine: to some point he is right, you have to have a conversation about this income inequality. caroline: and call it a national emergency.

that is what he says. joe: coming up, move over, millennials. a new generation we can complain about. what do investors know about eneration z? that's next. this is bloomberg. ♪

caroline: time now for a look at what is trending across the bloomberg universe. kaplan is one of the highest profile parents nabbed in the college admissions scandal. meanwhile, bloomberg.com has a story on japan's cherry blossoms. an estimated 3.2 billion people

travel to and within japan to see. the company -- the country has relaxed visa policies. most cast members of game of thrones said there characters would be pro-brexit. you can follow all the stories on the terminal, and on bloomberg.com. : time for millennials to stand aside and make way for generation z. z becomes generation the biggest consumer spending cohort. we blame millennials for everything. gen x. x -- i'm

they blamed us for everything. special thanre millennials? they are still young but living in a very different time. social media has always been around. been around. this is a generation that has grown up with, like, instant gratification. push a button, get whatever you want, and they are also very in tune with what celebrities are doing because .hey see it every day they are following these influencers. of things's a lot like millennials killed this, millennials killed packaged salami. other things that millennials ise into that generation z

like, "that's not cool?" of generation z are vegetarian or vegan, so move at, maybe? bloomberg did a survey and it's pretty drastic the change in numbers. you see a big jump in veganism and being vegetarian. a big one for the likes of campbell soup or kraft or very large packets plastic food brands because they are going to have to write a way to cater to a generation that cares about health, that cares about animals. caroline: more than companies coming out having ethical standards to lure people.

which companies are making inroads at the moment? a portfoliowith called the influencer in economy , mostly by way of which 20 instagram accounts had the most .ollowers cristiano ronaldo, selena gomez, ariana grande, and duane the rock johnson, and looking at who they partner with -- a lot of nike, and a lot of under armour, even coca-cola. story theysaw in the are looking for companies to be . little edgier is this something brands are

really going to be able to embrace you can >> that's the question. it seems like they will have to because we've already seen the a hard time having connecting with this in a ration and growing and changing models. you look at the survey bloomberg did. is more likely to go to resale departments and by already used clothes. that stores. i tried to make it more attractive. the are likely to buy clothes from stores that show they are pushing the agenda of gender equality. but will spend more money, at this point, they are seven to

22 years old, so i don't know if they are spending their own money. genz is ticker available. sarah: before i went into film , i looked at. caroline: pop quiz, and you cannot answer, sara, because you already know the answer. what's next? apparently it's generation alpha. are a lucky generation. they are under six years old and already as cool as they can be. caroline: bloomberg has learned goldman sachs has taken on the job of overseeing pinterest stock. goldman is one of the three lead underwriters.

stanley has taken a role in what is likely to be one of ever.ggest ipo's uber's roadshow for would be investors will begin later this month. nike did not disclose terms of the deal, but the times of london [indiscernible] $8.5 million a year. let's turn attention to lecturing autos. conspiredalleging bmw to delayed the development and rollout of new admissions technology requirements.

>> this is not specifically tout all of them colluding do the same sort of chicanery that volkswagen has paid billions of dollars for. the three companies being and notof colluding really put those out when they are ready to go. that's the allegation. costtransition is going to billions of dollars. that is one of the things that has become completely obvious. it is obvious there's going to billions spent developing batteries, procuring them.

there are deeper moving parts in an electric vehicle versus diesel or gasoline cars, so there are these big thatberating effect companies are sort of accused of dragging their feet. in the ideaerested of less labor involved because there's less moving parts. germany has its biggest economy in years. sort of the future of a lot of these advances just may not be as labor-intensive as they used to be. >> it is a major concern. one of the reasons they are vaunted is being able to plan and anticipate changes of

this sort. you heard even united auto workers in the u.s. voice the same concerns heading into a , but thisn this fall is an issue we will continue to hear about all summer long and , that this is a future that is uncertain. : talking of electric bloombergwe have a scoop that an employee is .lleging elon musk push him was an episode that took place in september and it was an employee who was leaving the company and was going back to

tie up some loose ins and make his way out of the company. this was a month after the infamous go private tweeting the funding is secured. musk was under a lot of stress. they learned there was an incident in which elon musk touched, pushed -- that matter is up for debate and described different by different people in the story, but the principal contact with this employee, a cost of this employee on the way out the door. this is a matter of the board investigated and decided was not a typical altercation. : fascinating. you will be joined craig and i if you tune in in a few minutes for "bloomberg technology." stay with us. we will be talking much more on things you don't want to miss.

from new york, this is bloomberg. ♪

hey,ne: all right, well -- joe, there you are. joe: here i am. romaine: there was a story on the bloomberg terminal about how we got a lot of participation from individual investors but hedge funds are still on the sideline. it basically shows that over the so, netee months or exposure has really gone down and it's not anything like what you saw in january of last year. lee, who we were talking to earlier at the close, in his view, this is what it looks like when investors are de facto short. romaine: i see so many people trying to spend saying this means there is so much cash on the sidelines and people will be bigng to rush in, but if

players say it's not enough to entice them back into the market, isn't that a cause for worry? joe: don't miss this -- ecb rate decisions and fed minutes announced next monday. romaine: caroline is up next with "bloomberg technology" in the u.s. ♪ want more from your entertainment experience?

just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.

♪ caroline: i'm caroline hyde in new york in for emily chang. this is "bloomberg technology." it could be weeks before a final trade agreement is made. facebook ceo mark zuckerberg released his outline for regulating the web, but some in washington are not convinced. we will speak with fcc